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News & Insights

Our team of experts shine a spotlight on new legal developments, share their views on the impact of current affairs, and offer insights on issues that could impact you and your business.

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UK’s start-up boom: all its seems?

According to reports in the Financial Times, the pandemic has ignited a start-up boom in the UK.

It is certainly true that there are lots of new companies being incorporated: the figure for the third quarter in the last year (221,000) was the highest figure of the past decade. Low interest rates, government support and the new opportunities exposed by the pandemic have also combined to help many entrepreneurs launch businesses. Undoubtedly COVID related changes in personal circumstances have given some the push they would not otherwise have had to start something up.

I suspect, however, that the pandemic is killing off more than its fair share of start-ups too. I find it interesting, for example, that according to the latest Companies House figures, the number of companies being dissolved jumped by 34,191 (25.0%) in the first quarter of 2021 compared with the first quarter of 2020. This is despite there being a pause of the voluntary and compulsory strike off processes between 21 January and 8 March 2021.  

Fingers crossed the new businesses make up for the ones we are losing.

The 221,000 companies incorporated in the third quarter of last year was the highest figure of the past decade, with the first three months of this year in second place, when there were more than 211,000 incorporations.

Tags

business, startups